Question

Why is money called a medium of exchange ?

Answer 1

Money eliminates coincidence of wants
The person holding money can easily exchange it for any goods or service that he or she wants.
Since money acts as an intermediate in the exchange process, it is called the medium of exchange

Answer 2

Hey there,

Hi there,

Money is called the medium of exchange because it represents the worth of a country's economy and its value. In older times, people used to exchange material objects to buy material objects. Later a standard was set in terms of money which is now used as  a medium of exchange.

It helps to keep the countries to remain on the same page and work according to standard set regarding money. It eliminates the doubts and chances.

I hope the answer is helpful.

Thanks